What is often more relevant in working capital management compared to capital budgeting?
Understand the Problem
The question is asking to compare the relevance of different financial metrics or strategies in the context of working capital management versus capital budgeting. It seeks to identify which of the provided options is typically more important in managing working capital compared to long-term investment considerations.
Answer
Short-term assets and liabilities
Short-term assets and liabilities are often more relevant in working capital management compared to capital budgeting.
Answer for screen readers
Short-term assets and liabilities are often more relevant in working capital management compared to capital budgeting.
More Information
Working capital management focuses on ensuring operational efficiency and liquidity through the management of a company's short-term assets and liabilities. This contrasts with capital budgeting, which is more concerned with long-term investment decisions.
Sources
- Working Capital Management: What It Is and How It Works - investopedia.com
- The web page with info on - Example Source - afponline.org
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